Uruguay: Business Environment
If a company does not distribute net taxable income after three fiscal years, such amounts are treated as a deemed distribution and are subject to a 7% deemed dividend tax.
Uruguay | Latin America & Caribbean | United States | Germany | |
Number of Payments of Taxes per Year | 20.0 | 28.2 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 163.0 | 327.5 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 41.8 | 46.8 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Personal income tax brackets 2022 (employment income) | Progressive rate from 0% to 36% |
Monthly BPC ("Base de Prestaciones y Contribuciones") | UYU 5,164 in 2022 |
Up to 7 BPC | 0% |
Between 7 and 10 BPC | 10% |
Between 10 and 15 BPC | 15% |
Between 15 and 30 BPC | 24% |
Between 30 and 50 BPC | 25% |
Between 50 and 75 BPC | 27% |
Between 75 and 115 BPC | 31% |
Above 115 BPC | 36% |
Capital investment (interest, rents, royalties, capital gains) | 12% |
Self-employed individuals can enjoy an income reduction of 30% for expenses calculated on a notional basis.
The income tax on non-residents individuals (IRNR) is generally at 12% (25% for income obtained by entities resident, domiciled, or located in a low-tax jurisdiction).
Individuals who became tax residents before 2020 could opt for a six-year tax holiday on foreign-source income. Individuals who become tax residents from 2020 may opt for an 11-year tax holiday on foreign-source income or a permanently reduced tax rate of 7% on that income.
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Latest Update: November 2024